Media caption Rishi Sunak : “The government is going to step in and help to pay people wages”
UK business leaders have expressed “relief” after the government committed to pay the wages of employees unable to work due to the coronavirus pandemic.
On Friday, the government announced it would pay 90% of salaries for staff who are kept on by their employer .
The Confederation of British Industry said firms were “overwhelmed with relief” by the “landmark” pledge.
It came as Prime Minister Boris Johnson also ordered cafes, pubs and restaurants to close from Friday night .
Chancellor Rishi Sunak, who announced the support package at the daily coronavirus briefing with the PM, said closing pubs and restaurants would have a “signific ant impact “on businesses.
But he added the government intervention – covering wages of up to £ 2, a month – would mean workers should be able to keep their jobs, even if their employer could not afford to pay them.
It is understood the wage subsidy will apply to firms where bosses have already had to lay off workers due to the pandemic, as long as they are brought back into the workforce and instead granted a leave of absence.
The government had been under growing pressure to intervene to support workers to prevent mass unemployment as a result of measures directed against the outbreak.
The CBI, the UK’s largest business group, said it was a “landmark” offering from the government.
“It marks the start of the UK’s economic fightback – an unparalleled joint effort by enterprise and government to help our country emerge from this crisis with the minimum possible damage,” director general Carolyn Fairbairn told BBC Newsnight.
Nik Antona, national chairman of the Campaign for Real Ale (Camra), said: “Whilst the pubs industry will be devastated by the decision to force closure, it is exactly the type of decisive leadership that has been called for this week as many pubs hung in limbo.
“Pubs and the wider hospitality industry now have clear instruction that closing their doors is the right thing to do and the confidence that the government will support their staff and their business. “
The British Beer and Pub Association said the chancellor’s new measures would help “safeguard thousands of livelihoods.”
Tim Foster, co-founder of The Yummy Pub Co, which runs four pubs in and around London, said the ne w measures were overdue but would stop his Members of staff being laid off.
“I’m unbelievably relieved. On Monday there was no business next Friday, which I spent years building, “he said.